Strategic Management of Best Buy

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author Note

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Executive Summary:
The paper is focused in the elaboration of the business operations of a chosen company Best
Buy. The organization is one of the renowned global consumer electronics retailer. The paper
assesses the consumer electronics industry and provides a discussion regarding competition
inside the organization. In addition to this, the paper also summarizes an analysis of the
internal environment of the selected organization. Apart from this, the paper elaborates the
financial performances and the strategic performances of the selected organization and along
with that, it identifies the competitive advantages for the organization. With a precise focus
on the findings, the paper provides some important recommendations for the chosen
organization in order to improve their business.

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Introduction:
The modern business world is observed to experience a notable growth in the retail
sector (Rhodes & Brien, 2014). Many of the organizations, operating in the mentioned
industry are seen to flourish and achieve the desired growth in a significant manner. One such
organization in the retail industry of the United States is observed to be in the form of Best
Buy. The paper is focused in the elaboration of business operations of the mentioned
company. The mentioned organization is one of the renowned name in the American
consumer electronics industry for the excellence in their products and the services. Apart
from this, the selected organization is known for the significant incorporation of the
technology and innovative ideas into the products and the services for achieving the
preferences of the customers in a better manner. The company has established a significant
business due to their excellence in reaching out to the people or the potential customers with
the products and the services and that is pretty evident with the opening of 1008 number of
outlets across the globe (Bestbuy.com 2019). Apart from that, the paper analyses the internal
and the external environment of the chosen organization. With a precise focus on the finding
of the analysis, the paper also recommends some of the key developmental strategies for the
chosen organization. The selected organization is seen to focus on the effective formation of
the strategies for entering the high income groups in a better manner with the increment of
the product chain and application of the suitable pricing of the products.
Industry Overview:
The consumer electronics market of the chosen cuntry is expected to have a
significant growth in the coming years. The expected revenue of the chosen industry in the
year 2019 is 76998 million US dollars (Statista.com, 2019). Apart from that, the revenue of

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the chosen indusry is expected to achieve a growth of 6.2% over the time span of 5 years
starting from 2019 to 2023 (Statista.com, 2019).
Competitor Discussion:
The major competitors of the organization are observed to be Walmart, Target
Corportation, Costco and Staples. The revenue of one of their fiercest competitor, Walmart is
seen to be 514.415 billion US dollars and for Target Corportation, the sum of the revenue is
observed to be 71.88 billion US dollars at the end of the 2017-18 finnancial year
(Walmart.com, 2019). Costco had a revenue of 129 billion US dollars in the year 2017 and
Staples is observed to achieve 20.217 billion US dollars in the year 2016 (Costco.com, 2019).
Porter’s Five Forces:
Threat of new entrants: Low
With the concerns regarding the infrastructural development and the significant
competition of the market based on the application of the competitive pricing policy, the new
organizations are seen to find it difficult to enter the market. Along with that, the significant
market share of the leading organizations of the industry such as Walmart, Target
Corportation, Costco and Staples along with BestBuy is considered to be a major conbcern
for the new entrants in the indutry as it creates considerable amount of difficulty in reaching
to the customers with the information of the products. Hence it is pretty evident that the
chosen organization faces notably limited impact of the new organizations that are entering
the global and national consumer electronics market.
Threat of Substitution: High
With the almost equal stand of the organizations in terms of applying the low pricing
policy for the achievement of the larger customers and with the intention of producing quality